CL · 10-Q · 2026Q3 · Full report

Operating Margin Drivers

COLGATE PALMOLIVE CO · 2026-10-30 · Importance 24 · Surprise 14

Third-quarter operating profit increased 3% to $1,088, or 5% to $1,117 excluding program charges, while reported operating margin fell 30 basis points to 20.3% and adjusted margin rose 20 basis points to 20.8%. The adjusted margin improvement reflected a 90-basis-point gross-margin increase partly offset by a 70-basis-point increase in SG&A as a percentage of sales. North America operating profit fell 11% to $177 and margin declined 210 basis points to 19.5%, while Latin America profit rose 17% to $392 and margin increased 100 basis points to 29.6%. EMEA profit rose 8% to $262 with margin up 140 basis points to 23.2%; Asia Pacific profit declined 1% to $211 and margin fell 110 basis points to 26.4%, while Hill’s profit rose 5% to $267 and margin slipped 20 basis points to 22.2%.

Key facts

Excluding applicable charges, operating profit increased to $3,396 in the first nine months of 2026 from $3,240 in the first nine months of 2025. source
Operating profit increased 3% to $1,088 million in Q3 2026 from $1,059 million; excluding program charges, it increased 5% to $1,117 million. source
Operating profit for the first nine months of 2026 decreased 5% to $3,069 from $3,214 in the first nine months of 2025. source
North America Q3 2026 operating profit decreased 11% to $177 million and operating margin fell 210 basis points to 19.5%, primarily due to lower gross profit and higher SG&A as a percentage of sales. source
Latin America Q3 2026 operating profit increased 17% to $392 million and margin increased 100 basis points to 29.6%. source
EMEA Q3 2026 operating profit increased 8% to $262 million and margin increased 140 basis points to 23.2%. source
Asia Pacific Q3 2026 operating profit decreased 1% to $211 million and margin fell 110 basis points to 26.4%. source
Hill’s Pet Nutrition Q3 2026 operating profit increased 5% to $267 million, while margin decreased 20 basis points to 22.2%. source